There's no doubt the August jobs report was not great. The economy isn't producing enough jobs to bring unemployment down quickly. The unemployment rate dropped to 8.1 percent in August from 8.3 percent, but not because a lot of people were finding jobs. The number of employed people actually fell by 119,000.
The unemployment rate is the percentage of people in the labor force who want work but can't find it. So sometimes the unemployment rate can shrink simply if the labor force shrinks. That's what happened in August, big time. The labor force shrank dramatically, by 368,000 people. The number of people in the labor force who are unemployed fell, too, though not by as much. Together, these two shifts pushed unemployment lower.
The labor-force participation rate -- the percentage of the civilian working-age population that is either working or looking for a job -- fell to 63.5 percent, the lowest since 1981. For men, the labor-force participation rate was the lowest on record, at 69.8 percent, notes Neal Lipschutz at the Wall Street Journal's Real Time Economics blog.
First this article has to take the Jobs data to Confessional with the Obama Administration, then the article tries to spin it off as "We don't know" the real reason and offers up the vague possibilities, while Ignoring the real reason for constant 8% + unemployment for the last 3 years, going on 4 years of terrible economic numbers.